Foreign investors turn net sellers again on Bursa Malaysia

PETALING JAYA: Foreign investors reverted to net selling to the tune of RM559 million last week, marking the second net outflow of September, according to MIDF Research.

Comparatively, the second week of the month saw foreign investors as net buyers at RM70.9 million. Combined, for the first three weeks of September, foreign investors were net sellers to the tune of RM1.07 billion.

Meanwhile, retailers were net buyers of RM579.1 million worth of equities last week, with local institutions at -RM20.1 million net during the same period.

“Last week was the 11th consecutive week of local retailers as net buyers on Bursa to the tune of net RM5.61 billion, in comparison of local institution as net sellers at -RM727.46 million and foreign investors at -RM4.58 billion since early July,” MIDF said in its fund flow report yesterday.

As the market reopened on Monday last week, foreign investors sold RM187.90 million net of local equities, with retailers and local institutions as net buyers and net sellers at RM279.48 million and RM91.58 million respectively.

Foreign selling happened every trading day of the week, with the largest on Tuesday at RM223.22 million and smallest on Friday at RM63.21 million.

So far in 2020, foreign investors’ net selling amounted to RM21.43 billion worth of equities on Bursa. Local players, institutions are net buyers at RM9.59 billion and retailers at RM11.47 billion.

“In comparison to another three South East Asian markets that we tracked last week; the Philippines recorded the least foreign net outflow while Malaysia experienced the biggest outflow compared to the others,“said MIDF.

In terms of participation, the retail investors recorded a weekly decrease of 9% in average daily trade value (ADTV) while the foreign investor experienced an increase in ADTV of 25.41%.